Stocks continue to recover ahead of Meta earnings

Equities have made further gains, though sentiment remains fragile thanks to elevated oil prices, says Chris Beauchamp, Chief Market Analyst at online trading and investing platform IG.

Stocks make further headway

“The folly of Donald Trump’s war is apparent to everyone, and imagine how much higher global equities would be had the ill-judged adventure not taken place. This market is straining to push higher, but exuberant bulls are being held back by the fear that oil prices will rise further from here. Even embattled French stocks are higher, after some impressively-brave bargain hunting yesterday. Real headlines about peace progress would certainly do the trick, particularly after yesterday’s were proved to be a red herring.”

Meta’s results a key litmus test

“While it has trimmed some of its post-Muse gains, Meta is still basking in the success of its AI model. But the likelihood is that the group will have to keep spending to maintain pace against competitors. The trick will be in convincing skittish investors that splashing the cash will deliver the long-term growth it needs.”